Graceland Updates 4am-7am

There is a battle going on in the silver market for the $25 level. A lot
of silver investors that bought silver on the rebound after the 1980 collapse
saw price stopped dead in its tracks at $25. Now, decades later, they want
out at break-even. That is 99% of the reason why silver halted at $25.

The difference between the amateur and the professional investor can be
summed up in one sentence by each group.

I respond to Gold price weakness with the cold execution of buy
orders. I respond to price strength with the same cold execution of sell
orders, all in a pyramid formation that can reach dozens, or even hundreds
of orders, at a myriad of price levels.

That's not just what I do; it's what I am.

As gold's price rose towards Gold $1387 and Silver $25, I continued to
execute on my profit-booking sell orders, and urged you to do the same. I
took a lot of "flak emails" for not chasing price. Many never understood
that somebody who bought the sell-offs into the lows of $1156, $1045, $905,
$860, and $680, particularly with Gold Stock, and urged you to do the same,
is not really interested in paying $1380 in a price chase, for what he already
bought at all those lower prices. Higher Gold & Silver prices
are not getting away from me. They are making me money.

Most did not notice the loss of price momentum that began in the metals
over 6 weeks ago as I continued to say, "Do not buy. Sell.". As a rule of
thumb, and I suggest you read this next sentence 100 times, I like to add
to my positions with 1-2% of my risk capital on every $50 fall in
price, and sell approx. the same way on strength.

So, when I am selling into strength of $200 an ounce, like we just had
from $1156, I am booking profit on a total of maybe 4-8% of my metals position
holdings. There are no wild "sell everything!" or "back up the
truck and buy!" statements or actions.

Now, everyone notices "the correction". Analysts and investors are lined
up now that price has fallen (below their latest buy prices) to predict, "you
are going to experience a correction".

I say, you just did. More importantly, you are experiencing, in
the Gold market, the difference between seeing what happens, and responding
as a professional with buy and sell Gold & Silver market orders.

Here's the bottom line: There may or may not be further price
weakness from these levels.

All those who urged you to keep selling into Gold $1156 (and all the other
low points, but to buy into 1387), are now urging you to stand aside for "the
correction". You should already be on the buy, not calling for
higher or lower prices. Telling me your prediction of where
price is going is a total waste of my time, and a much bigger waste of your
time.

Tell me whether you bought anything Gold or Gold-related on this sell off.
Right here, right now. That is all that matters. You had your chance to bomb
me with emails as to why I had to chase price at Gold $1380. Now it's my
turn. My turn to ask the question, "Are you on the buy here
and now? Yes or No?" What did you buy into 1320? Nothing? Prediction of
what others will buy to carry your price-chased positions higher, is nothing
more than a pipedream. Specific buy action, specific price response action
here and now into current weakness, by you, is for winners.

Here's the Daily
Silver Chart. That chart shows, at least so far, what I would term
a majestic correction in Silver. It is not a flag pattern, because
price has not risen vertically before going into the correction, but
it is flag-like. It is a drifting minor rectangle, and the possibility
exists of an astro-blast through the $25 area, and on to prices as high
as $28, or even $33.

If you are a silver player, and bought silver at $24-25 on the way up,
but no silver on the two dollar an ounce correction that has already occurred,
my strongest suggestion is that you drive to the nearest grocery store, find
the nearest old lady buying groceries on sale, and give her full power of
attorney to manage all your investments. In fact, make an arrangement that
the grocery store owner puts silver in the store and I guarantee you that
when it goes on sale, like it just did, Granny will be on the buy.

For all practical intents and purposes, all the world's Grannies just bought some Silver
at $23 an ounce and some Gold at $1320. Who cares about Granny. The
question is: Did you buy, yes or no?

You can see that price has broken out, upside, from the supply line border,
and has done so, ironically, as the price-chasers now "assume the position" for
a rest in the Silver market. Sorry, but the rest already happened. There
could be further weakness in Silver, yes. The rectangle could blow up. Price
could take out the $23 area lows and begin a more severe correction. If it
happens, those of you who are Silver market investors, will not waste time
analyzing the situation. What you will do, is buy Silver in greater size
than you did into $23, alongside Granny, as she does the same, at the Silver
Grocery Market. We can't know if Silver is going to have a further correction
or burst upside, but we can, and will, respond professionally to what does
happen.

Let's move on to GOLD. In the Gold market, we are witnessing the "battle
of the head and shoulders patterns". Here's the chart with those patterns
highlighted in detail. Gold
Bullion Chart.

Notice there is a small head and shoulders top formation contained in a
bigger one. The bigger one lacks symmetry, thus it doesn't carry the "weight" that
it could. The two bear h&s tops are doing battle with the highly symmetrical
h&s bottom on the right side of the screen.

Here's a 2nd chart. Gold
Bull Wedge Breakout This chart shows the breakout. Notice the correct
method of drawing a down wedge. The wedge, in a down move, must be started
from a supply point high, not a demand point low. The bull wedge and the
bull h&s bottom are locked in a battle against the bear h&s tops,
and, sadly, against the total failure of the gold community to buy any
of this weakness. Let's change that action. The odds are probably 50-50
that we rise to the $1450 area or fall to the $1265 area, but whatever
the odds are is irrelevant. What is totally relevant is how you will respond
to price at either of those points. You know the answer. Do what must be
done, one ounce and one share at a time. Subscribers were buyers of $1320
Gold and sellers of a portion of what was bought into $1350 yesterday.
As I send this off, we are back at $1330 and Granny is back on the buy.
Are you? A week ago I asked readers if you were prepared to buy as price
fell. Most of course, had just finished chasing price in size into $1387
and couldn't buy anything. Now a feeling of confusion is beginning to permeate
the golden air. "Why has gold stopped rising?" is the question.
My suggestion: Forget the questions, and get on the buy. I'm buying
gold every $3 down with each buy order bigger than the previous. Join me!
See you out there. On the Golden Gridlines!

Special Offer For Website Readers: Send me an Email to freereports4@gracelandupdates.com and
I'll rush you my free Golden Soldier Report! Learn what it takes to manage
the key turning points in the Gold market! I'll include a special section on
Uranium! Thanks!

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Written between 4am-7am. 5-6 issues per week. Emailed at aprox 8-9am daily.

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the
Graceland Updates daily between 4am-7am. They are sent out around 8am-9am.
The newsletter is attractively priced and the format is a unique numbered point
form. Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided
by Stewart and Graceland Updates is for general information purposes only.
Before taking any action on any investment, it is imperative that you consult
with multiple properly licensed, experienced and qualifed investment advisors
and get numerous opinions before taking any action. Your minimum risk on
any investment in the world is: 100% loss of all your money. You may be taking
or preparing to take leveraged positions in investments and not know it,
exposing yourself to unlimited risks. This is highly concerning if you are
an investor in any derivatives products. There is an approx $700 trillion
OTC Derivatives Iceberg with a tiny portion written off officially. The bottom
line: